Nanotech: A View from Japan

Josh Wolfe, the advisory
world's leading authority on nanotech recently attended Japan's Nano Tech 2005.
Here are some of his observations from the conference, and the outlook for the
latest stock added to his "Nansophere" in his Forbes/Wolfe Nanotech
Report.

"Nano Tech 2005 was the world's largest nanotech
gathering held in Tokyo's Big Sight conference tower over three days. Over
30,000 people attended this conference in an effort to learn about new nanotech
research and development and catch a glimpse of the latest nano-enabled
prototypes from Asia's consumer electronics and chemicals giants.
Two
general trends in nanoscale electronics development emerged from the more detailed
scientific presentations.

"The first is the belief that future achievements
will focus on the hybridization of dissimilar technologies, such as the
integration of solar cells and fuel cells in portable electronic devices. The
second focused on how interdisciplinary advancements in the fields of bio and
nanotechnology will drive future product innovations. In other words,
nano-electronics, nano-biotech and nano-energy were 'front' burner sectors where
the advancements would be realized soon.

"On one level, these types of conferences
are mostly about hype and rallying up investors, potential alliance partners,
clients and journalists about the prospects for an industry or sector. However I
must say that I was taken aback by Japanese commercial enthusiasm for the
prospects of nanotechnology. Asians don't seem to be as hung up as Americans are
with stock hype, IPO's or Street buzz. There was no question of nanotech's
validity at this conference.

"These giant companies are squarely
focused on leading the globe in new technologies and processes that take
advantage of our ability to manipulate matter at the molecular level. The
conference highlighted Japan's exhaustive, bottom-up approach to research, with
an emphasis on ongoing collaborations between industry, academia, and
government. As I have said in previous issues, the Asian's have fully grasped
the power and potential of nanotechnology and are determined to lead the world
in its industrialization.

"Meanwhile, the newest member of our
Nanosphere portfolio, Invitrogen (IVGN NASDAQ),
is involved in nanoscale labeling and detection. The firm reported an
excellent Q4 2005 with earnings rising 63% over the prior year quarter,
bolstered by improved demand and the impact of well-executed acquisitions.
Invitrogen earned $49.6 million ($0.87 per share) versus $30.5 million ($0.55
per share) in Q4 2004. Fourth quarter pro forma EPS was $0.90, versus Wall
Street's consensus of $0.88. The company's fourth quarter revenues surged from
$262.2 million last year to $325.3 million in the latest quarter (analysts had
projected $317 million in revenues).

"The company Chief Executive Greg Lucier said he expects to spend another $500 million this
year for accretive acquisitions. This comes on the heels of Invitrogen's thrifty
purchases of nanotechnology firm Quantum Dot and several other life sciences firms in
2005.Invitrogen now expects 2006 pro forma earnings of $3.90-$4.10 per share
on revenues of $1.33-$1.36 billion. The Street believes IVGN results will be at
the high end of the ranges, projecting EPS of $3.98 on revenues of $1.35
billion. Invitrogen currently trades at 18.5 times the low end of its own 2006
EPS estimate. We reiterate our Buy rating."